Weekly Report 08/08 -12/ 08/ 2011

The mild downside correction from 1683.00 to 1638.00-just a few dollars above 23.6% of CD leg- represented the effect of the bearish harmonic Deep Crab pattern-we recommend reviewing the previous reports for more details- and now, we will have a look at the metal from another view where the metal is forming the IM wave -impulsive wave- that started at 680.00. It seems that, we are witnessing a case of extended fifth wave within the extended fifth wave. Henceforth, we see chances for achieving more bullish actions after relieving Stochastic. Soft technical objectives reside around 1770.00 zones. On the downside, a break back below 1652.00 delays.

The trading range for this week is among the key support at 1627.00 and key resistance now at 1785.00.

The general trend over the short term basis is to the upside, targeting $ 1888.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying gold around 1695.00 targeting 1770.00 and stop loss below 1650.00 might be appropriate.